Trading & Investing
Net profit and return
The realised profit and its return on the capital committed.
The Formula
Net = Proceeds - Cost - Fees; Return = Net / Cost
The realised profit and its return on the capital committed.
| Symbol | Meaning | Unit | Notes |
|---|---|---|---|
| P | Proceeds | currency | Shares times the sell price. |
| C | Cost | currency | Shares times the buy price. |
| F | Fees | currency | Total round-trip commission. |
What Each Symbol Means
Pcurrency
Proceeds
Shares times the sell price.
Ccurrency
Cost
Shares times the buy price.
Fcurrency
Fees
Total round-trip commission.
See It Worked With Real Numbers
A formula on its own does not tell you which number goes where. The how to calculate stock profit page applies this equation to a concrete case, shows every intermediate step, and names the mistakes that produce a wrong answer even when the algebra is right.
Where This Formula Appears
This equation is the working core of How To Calculate Stock Profit, filed under Finance. Every number the guide produces comes from substituting into this one line.